USDCAD moves up toward the 200 hour MA
The USDCAD is trading to a new session high.
Recall from last Wednesday, the BOC increased rates by 25 basis points and announced they have a conditional pause in rates, The USDCAD moved up to a new high for the week at 1.34276.That high fell short of the upside swing area between 1.3434 and 1.3445. The price rotated back to the downside.
On Thursday, the high for that day, stalled near the 200 hour MA (near 1.3405) and the sellers took over. The lows from Thursday and Friday, and again today stalled near 1.32969 (call it 1.3300).
The price moved up to test the falling 100 hour MA in the early European session and then broke above the 100 hour MA – finally with more momentum – in the last few hours of trading.
The price is now approaching the 38.2% of the move down from the January 19 high comes in at 1.3383 followed by the 200 hour MA at 1.33874. Getting back above that 200 hour MA would be needed to increase the bullish bias. The 50% of the same move lower would be another target at 1.34092.
The buyers are looking to make a play but they need to get and stay above the 200 hour MA. Failure to do so, and the rise off the recent lows is a nice intraday move, but the sellers remain more in control.
Move above, the 200 hour MA and the buyers are getting more serious and taking back more control.